Marsh, Without Fraudulent Intent, Wrote a Check for $500 on Her

Multiple Choice

Marsh, without fraudulent intent, wrote a check for $500 on her checking account at Mechanics Mutual Bank, where only $350 was on deposit. Marsh has no agreement with the bank regarding overdrafts. In this case the bank

A) must pay $350.
B) must pay $500.
C) may honor the check and charge Marsh's account for no more than $350.
D) may honor the check and charge Marsh's account for $500.